And this often leads to a few questions… How do I know if my e-commerce is working as it should ? How can I optimize it and sell even more?
At Kiwop we want your business to be a future-proof business. That is why we recommend that you continue reading this article on how to effectively measure the success of your e-commerce .
What are you waiting for?
What is an e-commerce and how to create it
An e-commerce is, as its name suggests, an electronic commerce . That is, immersed in the digital world. Thus, the main objective of an e-commerce is to sell online , being a kind of digital showcase for a brand.
Yes! There are many types of e-commerce depending on their target or what they sell. For example, an e-commerce that is aimed at consumers to companies (C2B) is not the same as a business e-commerce that is aimed at other brands (B2B). Just as it is not the same if your e-commerce only sells its own products or if, on the contrary, it is a Marketplace or store of stores .
So, before setting up an e-commerce site , start by defining what type of e-commerce site you want to set up. Answer questions like who you want to target, what you want to sell, how you are going to ship orders… After you have defined your business, then yes, ask experts for help in developing your e-commerce site !
What is success in e-commerce?
Now, what is success? It may seem like something very objective, but in reality it is not, not at all!
In fact, what for one company may be a resounding success, such as reaching 400 sales in a month, may be a total failure for another brand because they are looking for 400 sales in one day.
One thing is clear, the main objective of e-commerce is to sell , there is a reason they are online stores! The question is to know the main metrics you should focus on and establish measurable, specific, time-bound, achievable and, above all, realistic objectives.
Don't try to start by measuring your success by reaching 1,000 sales a day, start at the beginning. After all, all the great successful e-commerce companies of today have taken it step by step.
Examples of successful e-commerce
Amazon, eBay, Zalando, Rakuten … You've heard of them, right? How could you not! They are some of the largest and most successful e-commerce sites in the world. And what's the secret behind all of them?
Well, to start with, all of them except Zalando started in the 90s, so… give yourself time!
On the other hand, all of them offered new features when it came to shopping and browsing , such as new ways of buying, like eBay , social interaction and real opinions, like Amazon , online stores for specific products or areas, like Zalando , or creating a store of stores at the precise time and place, like Rakuten .
Amazon is the e-commerce with the highest turnover worldwide
10 essential metrics to calculate the success of your e-commerce
And although each e-commerce must establish different objectives based on its own situation, it is advisable to know which metrics or KPIs to follow to measure the success of your e-commerce .
Traffic and traffic per device
Before focusing on sales or conversions, it is important to know how many users access your website , both daily, weekly, monthly and, if you have been running your e-commerce business for long enough, also annually.
And beyond this, it is also important to see where your users access the site from . This helps improve the usability and design of your e-commerce to focus on the type of device from which your customers access the site the most.
Revenue by traffic source
After looking at traffic, look at the revenue from each traffic source ! In other words, do they buy more from mobile, tablet or computer? This is another key piece of information to make it easy for your user to buy from you.
Average order value
The average order value is just as important, if not more so, than sales. It is the amount of money each customer spends on your e-commerce site when purchasing your products.
If your e-commerce's average order value is increasing, you're on the right track!
Conversions or sales
Here comes the big star in any e-commerce growth objective : sales! Of course, they are also very important. The greater the number of sales, the greater the turnover and growth of your e-commerce.
Although achieving growth in conversions and average order value is the central objective to measure the success of your e-commerce .
If you found this interesting, don't miss the blog on how to attract more customers to your e-commerce .
Products with better results
Another interesting fact is to know which products have the best results , whether in sales or traffic.
This way, when you need to optimize the SEO of your e-commerce or make changes to improve the usability of your website, you will already know which URLs to start working on those changes to obtain better results.
Return on advertising investment or ROAS
Return on Investment is key for your e-commerce , especially if you are investing money in advertising to promote your website.
This metric helps you know how much you are earnin kuwait telegrama g for each euro invested , so you can know if your advertising is working and compare it with other sales sources.
The formula is:
ROAS = Sales revenue / Investment x 100
Cart abandonment
Don't panic! In Spain, it is normal for an e-commerce site to have up to 70% cart abandonment . Yes, we know it's high, but there are a thousand ways to lower this percentage or even work on good remarketing to capture those unmade purchases .
Dropout rate
You should not confuse this metric with the bounce rate , since in this case we are dealing with users who have an interest in your e-commerce, that is, they interact and visit pages, but do not end up making purchases.
Knowing this data will help you see how many of your users end up becoming customers and observe the sales funnel to find the reason why. This way, you can reduce this abandonment rate and increase the conversion rate.
Rate of returns and refunds
This data not only tells us about the performance of your e-commerce , but also about its quality and esteem among your users.
A lower rate of returns or refunds means that there is greater satisfaction with what they buy and find in your e-commerce. This, of course, is also key to growing online.
The quality of what you sell is also important
Customer lifetime value
This is another metric that you should take into account. Through it, you can calculate the interaction, purchases and behavior of a user throughout their life cycle in relation to your e-commerce.
This way, you can classify those users with a high lifetime value and establish similarities to work on strategies and reach similar users.
Take your e-commerce to success
After all this information on how to measure the success of your e-commerce , all you have to do is get started and start measuring, optimizing, improving and selling more!
Now it's your turn.
If you need help or would like us to answer any questions related to your business, we will be happy to do so.
Contact us or follow us on Instagram for more information on digital marketing.
